Kodak doubles forecast loss and secures US$830m exit finance facility

Kodak’s latest monthly statement of operations reported a US$48.1 million ($45.9 million) operating loss in October before interest, tax and reorganisation charges. A cashflow forecast filed on 12 October predicted a loss of US$20 million.

The forecast also predicted a US$8 million loss in November and a US$9 million profit in December.

An Australian spokesperson told ProPrint the monthly operating reports “are not intended to provide an overall view of Kodak’s financial performance”.

“Among other things, the [report] only reflects the US corporate entities that filed for Chapter 11 [bankruptcy]. These entities are responsible for corporate costs, including the significant Chapter 11 reorganisation costs, corporate administrative costs and R&D costs.”

The spokesperson also said the firm’s cash position “is adequate to meet operating needs” and that it is “in compliance with the financial terms of its debtor-in-possession financing”.

[Related: Kodak Australia ‘profitable’]

Meanwhile, Kodak said its lenders had cast a “vote of confidence in the future of our company” after boosting its US$793 million interim and exit finance facility by US$37 million and establishing “improved” terms for repayment.

However, the company’s court filing revealed that it was having to pay double-digit interest rates on the facility, which includes US$455 million in new term loans and US$375 million in term portions issued to senior creditors.

This finance is contingent on Kodak’s sale of its trove of digital imaging patents for at least US$500 million.

The local spokesperson told ProPrint: “With a number of achievements in recent weeks, including the recent agreement on US$830 million in interim and exit financing announced, the company has built momentum, solidifying the path to emergence.”

Kodak chairman Antonio Perez said in a statement: “The improved financing commitment provides a longer maturity, lower fees and pricing, and greater liquidity than our previously announced commitment.”

This article originally appeared here and here at printweek.com

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